Newcrest posts 88 per cent profit slump on falling gold prices

Profits have tumbled for Australia's largest gold miner after it had to pay higher taxes and wrote down the value of its assets in West Africa.

Newcrest Mining made a net profit of $40 million in the six months to the end of December, down 88 per cent compared with the same time the year before.

Underlying profit, excluding the writedowns, was down 36 per cent to $207 million.

Newcrest says lower gold prices in the period dragged on the result, despite higher sales.

The company sold 26 per cent more gold, but the average realised gold price was down 13 per cent on the corresponding period a year earlier.

Newcrest's managing director Greg Robinson says the company has focused on reducing exploration and capital expenditure costs and pursuing other savings across the business.

"The operating and cost performance in the first half of the financial year did flow through the financial results, but was offset by the decline in the gold price when compared to the financial results of the prior corresponding period," he explained.

As previously flagged by the company, shareholders will not receive a dividend for the period.

Newcrest shares were down 0.8 per cent to $11.17 shortly before midday (AEDT).